Deputy Minister of Transport Le Dinh Tho signed to grant an aviation business licence for Bamboo Airways, owned by property developer FLC Group, on November 12.

Bamboo Airways of the Viet Bamboo Airlines Co., based in Nhon Ly, Quy Nhon, the capital of central Binh Dinh province, will be permitted to transport passengers, mail and freight both domestically and internationally.

All preparations have been completed to allow the carrier’s maiden flight to take off, said Dang Tat Thang, Director of Viet Bamboo Airlines. The firm aims to operate its first flight in the final quarter of 2018, he added.

Viet Bamboo Airlines Co. was established in 2017 with charter capital of 700 billion VND (31.4 million USD).

FLC has positioned Bamboo Airways as a “hybrid” airline, blending low-cost traits with those of traditional or full-service carriers to meet the demands of every market segment. The group has also invested in infrastructure for aviation operations, such as upgrading the Phu Cat Airport in Quy Nhon city and roads connecting the airport to the Nhon Hoi Economic Zone.

The first Airbus A319, A320 aircraft are being prepared by Bamboo Airways in Turkey and the Philippines for use in Vietnam.

The airline is expected to use 20 planes this year and 20 – 30 in 2019. The new aircraft from its 8.8 billion USD deal with Airbus and Boeing are set to be delivered in 2020.

In the international market, Bamboo Airways hopes to cover Japan, the Republic of Korea, China, Singapore, Thailand, Hong Kong, Taiwan and the Philippines. It also aims to open flights to the US and Europe in the long term.

It has also signed a memorandum of understanding with the Civil Authority of Vietnam on using landing services and security check-ups at Tan Son Nhat (HCM City), Noi Bai (Hanoi), Phu Cat (Quy Nhon), Dong Hoi (Quang Binh), Tho Xuan (Thanh Hoa) and Cat Bi (Hai Phong) airports.

According to the Ministry of Transport, the aviation market’s annual growth rate is predicted to be 16 percent from now to 2020, and 8 percent for 2020-2030. Local airlines are expected to serve 64 million passengers by 2020 and 131 million passengers by 2030.